A last-minute shopper walks past a window display announcing a sale in New York's Herald Square on 24 December.
Markets are waiting for signs that the US economy is gaining momentum, with its consumer confidence data expected to show Americans are more optimistic about the opportunity despite confusion elsewhere in the world.
After a sequence of indicators in recent days, economists say the US is on track to end the year on a high note and that growth probably increassed in the final quarter.
Figures last week showing that US GDP grew slower than expected in the third quarter were constituted by news that spending on durable goods was stronger, suggesting households were happier to splash out on bigger purchases. Business investment also grew, indicating growing business confidence
The economy grew at an annual rate of 1.8%, the commerce department said in its final estimate, down from the previously estimated 2%. But growth in spending on durable goods was revised up to 5.7% from 5.5%.
It is generally expected that consumer sensibility improved in the run-up to Christmas. The Conference Board survey for December, due on Tuesday was expected to give a reading of 58.3, up from a four-month high of 56 in November and mirroring signs that US households have been spending more, including on pricier items.
There have been signs that the US labour market is improving, that manufacturing output is rising and housebuilding is picking up determined. Some economists say the economy is expected to grow as fast as 3% in the final quarter of 2011. That is in complete contrast to the UK, where many economists expect no quarterly growth at all and possibly even a drop back into recession throughout strict measures at home and turmoil in the eurozone.
The US is affected to Europe’s problems. “There’s no doubt that events in the euro area in the first quarter of next year … have the potential to have a profound impact across the globe,” said Chris Scicluna at Daiwa Capital Markets.
“The US economy has shown surprising resilience towards the end of the year,” he said. But it was not yet clear whether that strength would be constant. “Consumer confidence and house prices will need to lift from these historically weak levels to provide convincing support to talk of a sustainable US recovery.”